[Fourth Quarter 2018]

Transcription

1 INVESTOR PRESENTATION [] CONTACTS Tori Creighton (Head of Investor Relations) Francisco Moyano (Corporate Finance Manager) Claudio Chamorro (CFO) Tel: (562)

2 IMPORTANT DISCLAIMER This document has been prepared by Parque Arauco for the purpose of providing general information about the Company. The Company assumes no responsibility for, or makes any representation or warranty, express or implied, with respect to, the accuracy, adequacy or completeness of the information contained herein. The Company expressly disclaims any liability based on such information, errors therein or omissions therefrom. This presentation includes certain statements, estimates and forecasts provided by the Company with respect to it s anticipated future performance and involves significant elements or subjective judgment and analysis that may or may not prove to be accurate or correct. There can be no assurance that these statements, estimates and forecasts will be attained and actual outcomes and results may differ materially from what is estimated or forecast herein. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all - inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the Company. Interested parties can only rely on the result of their own investigation and the representations and warranties made in any definitive agreement that may be executed. 2

3 4 13 INTRODUCTION INVESTMENT HIGHLIGHTS 8 OUR OPERATIONS 34 FUTURE DEVELOPMENT 3

4 1. INTRODUCTION 4

5 PARQUE ARAUCO AT A GLANCE FINANCIAL INDICATORS (DECEMBER 2018) POSITIVE LOCAL RISK RATING Parque Arauco is a real estate company dedicated to the development and operation of mixed-used properties in the Andean region. Key Figures Total GLA (m 2 ) 1,053,000 Revenues LTM (US$ MM) 296 Risk Rating Agency Rating Fitch AA- Feller AA- 17 Regional shopping centers EBITDA LTM (US$ MM) 215 EBITDA Margin LTM (%) 72.6% Net Financial Debt (US$ MM) 1,029 ICR AA- 11 Neighborhood shopping centers Total Assets (US$ MM) 3,423 SHAREHOLDER STRUCTURE (DECEMBER 2018) 7 Outlets 18 Strip centers 9 Offices, medical centers, hotels 21% Foreign Investment Funds 21% Local Brokers Market Cap US$MM 2,001 1% Local Mutual Funds 6% Others 26% Controlling Group 5% Said Yarur Family 3% Abumohor Family 17% Local Pension Funds 5

6 IN THE LAST SIX YEARS PARQUE ARAUCO HAS DOUBLED GLA, NOI AND AFFO GLA M 2 559, , X 818, , ,053,000 1,012, , Parque Arauco Kennedy opens as first shopping center in Chile Parque Arauco S.A. IPO Parque Arauco expands into Peru with the purchase of a 45% stake in MegaPlaza Norte in Lima Parque Arauco opens first mall in Colombia, Parque Arboleda in Pereira Capital increase for US$145 MM Capital increase for US$182 MM Purchase of minority shareholders in Colombia and Peru Capital increase for US$100 MM Parque Arauco signs agreement for a business combination with Wiese Group in Peru NOI US$ MM CONTROLLED ADJUSTED FFO US$ MM +2.0X +1.9X Source: Parque Arauco. Exchange Rate: US$= Does not include Marina Arauco nor Mall Center Curicó. 6

7 PURPOSE, MISSION AND CORPORATE VALUES OUR VALUES CORPORATE PURPOSE Our purpose is to create spaces that contribute to improving people s lives. Openness to change and innovation MISSION PILLARS OF OUR CULTURE STRATEGIC OBJECTIVES Our mission is to be leaders in developing and operating real estate assets, through profitable and sustainable growth that generates value for our stakeholders. Happiness Excellence Growth Profitability Sustainability Choose the Right option, not the easiest one Create a work environment that inspires an exceptional Te a m Respect for people and the environment Make things happen 7 7

8 2. OUR OPERATIONS 8

9 PARQUE ARAUCO HAS ICONIC AND DOMINANT SHOPPING CENTERS IN CHILE, PERU AND COLOMBIA PARQUE ARAUCO KENNEDY CHILE ARAUCO MAIPÚ CHILE ARAUCO ESTACIÓN CHILE LARCOMAR PERU MEGAPLAZA NORTE PERU PARQUE LA COLINA COLOMBIA 9

10 CHILEAN PORTFOLIO IN CHILE PARQUE ARAUCO HAS: Regional shopping centers Neighborhood shopping center Outlets Strip centers Chile GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation Parque Arauco Kennedy % ,5% 1982 Arauco Maipú % ,3% 1993 Arauco Chillán % ,8% 2007 Arauco Estación % ,6% 2008 Arauco San Antonio % ,5% 2009 Arauco Express % ,3% 2012 Arauco Premium Outlets % ,6% 2012 Arauco Quilicura % ,7% 2013 Arauco Coronel % ,4% 2017 Parque Angamos % ,0% 2018 Arauco El Bosque % ,0% 2018 Total Chile 500,500 91% 458, % The average age of the portfolio is 16 years. 1. Arauco Express has 15 strip centers in Chile: 11 strip centers in Santiago, 1 in Viña del Mar, 1 in Calama, 1 in Coquimbo, and 1 in Antofagasta. 2. Arauco Premium Outlet has four outlets located in Santiago, Concepción, Coquimbo and Curauma. 10

11 PERUVIAN PORTFOLIO IN PERU PARQUE ARAUCO HAS: Regional shopping centers Neighborhood shopping center Oulets Strip centers The average age of the portfolio is 7 years. Peru GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation MegaPlaza Norte % ,2% 2006 MegaPlaza Express Villa Chorrillos % ,1% 2009 Larcomar % ,7% 2010 Parque Lambramani % ,6% 2010 MegaPlaza Chimbote % ,7% 2012 MegaPlaza Express Villa El Salvador % ,8% 2012 MegaPlaza Express Chincha % ,1% 2013 InOutlet and Viamix (2) % ,8% 2013 MegaPlaza Cañete % ,4% 2013 MegaPlaza Express Barranca % ,9% 2013 MegaPlaza Pisco % ,4% 2015 El Quinde Cajamarca % ,1% 2015 El Quinde Ica % ,3% 2015 MegaPlaza Jaén % ,5% 2016 MegaPlaza Huaral % ,5% 2017 MegaPlaza Villa El Salvador II % ,3% 2017 Total Peru % % 1. Only partner in Peru is Grupo Wiese, which includes MegaPlaza formats (50%). 2. InOutlet and Viamix includes two premium outlets in Lima and three strip centers in Lima. 11

12 COLOMBIAN PORTFOLIO IN COLOMBIA PARQUE ARAUCO HAS: 3 1 Regional shopping centers Oulet in Colombia Colombia GLA (m 2 ) % Ownership Owned GLA (m 2 ) Occupancy Year of incorporation Parque Arboleda 41,000 55% 22,550 97,9% 2010 Parque Caracoli 38, % 38,500 87,1% 2013 Parque La Colina 62, % 62,500 97,2% 2016 Premium Outlet Arauco (Sopó) 13, % 13,500 51,4% 2017 Total Colombia 155,500 88% 137,050 90,9% The average age of the portfolio is 4 years. 12

13 3. INVESTMENT HIGHLIGHTS 13

14 INVESTMENT HIGHLIGHTS Financial Strength Stability 4. Sustainability and Corporate Governance 2. Diversification 3. Growth 14

15 STABILITY REVENUE TYPE AND CONTRACT DURATION FIXED VS VARIABLE RENTAL REVENUES CONTRACT LENGTH (BASED ON % OF REVENUES) 14 % Other revenues 86 % Rental revenues % 15% 36% 39% 100% years 39% of our contracts have a duration of more than 4 years and the average length is 5.7 years. 12 % Variable revenues <2 years 2-3 years 3-4 years >4 years TOTAL 88 % Fixed revenues TENANT REVENUE (BASED ON % OF REVENUES LTM) Our rental revenues are derived primarily from fixed contracts and are protected against inflation. 88 % Other tenants 12 % Top % Our top 10 tenants represent only 12% of Parque Arauco s total revenue. 15

16 STABILITY CONSISTENT SAME STORE GROWTH AND HEALTHY OCCUPANCY COST SAME STORE SALES (SSS) Y SAME STORE RENT (SSR) (%) OCCUPANCY COST (%) 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q SSS SSR SSS SSR Note: Peru s Same Store Sales and Same Store Rent in 4Q17 do not include Larcomar due to contingencies. 0.3 SSS SSR 16

17 STABILITY RESULTS HAVE BEEN POSITIVE IN ALL THREE COUNTRIES GLA (M 2 ) TENANT SALES 1 (US$ MM) COUNTRY LEVEL REVENUES 1 (US$ MM) COUNTRY LEVEL EBITDA 1,2 (US$ MM) +10.1% -1.0% +4.3% +5.8% CHILE 454, ,500 1,731 1, % +7.7% +1.5% +1.5% 402, , PERU % +18.9% +15.3% +15.0% COLOMBIA 155, , (1) In MUSD using the following exchange rates: US$1= CLP US$1= PEN 3.28, US$1= COP 2, (2) Including overhead expenses (Corporate headquarters, regional Services Center, Chile Division, Peru Division and Colombia Division) 17

18 STABILITY FOCUS ON CAPITAL CITIES Parque Arauco is concentrated inthe capital cities of Santiago, Lima and Bogota. PERU LIMA Megaplaza Norte Larcomar Inoutlet Faucett MegaPlaza Villa Chorrillos MegaPlaza Villa El Salvador InOutlet Premium Lurín MegaPlaza Villa El Salvador II Viamix Colonial 17 % of Parque Arauco NOI 17 % of Parque Arauco GLA CHILE SANTIAGO Parque Arauco Kennedy Arauco Maipú Arauco Estación Arauco Quilicura Arauco Premium Outlet Buenaventura Arauco El Bosque 43 % of Parque Arauco NOI 32 % of Parque Arauco GLA COLOMBIA BOGOTA Parque La Colina Premium Outlet Arauco Sopó 8 % of Parque Arauco NOI 7 % of Parque Arauco GLA 18

19 DIVERSIFICATION PARQUE ARAUCO DIVERSIFIES ITS MARKET RISKS AT A COUNTRY, FORMAT, AND SOCIO-ECONOMIC LEVEL COUNTRY LEVEL DIVERSIFICATION (% REVENUES) FORMAT LEVEL DIVERSIFICATION (% REVENUES) SOCIO-ECONOMIC DIVERSIFICATION (% REVENUES) 14% 5% 7% 3% 27% 48% 43% 59% 85% 9% Chile Peru Colombia Regional Strip center Neighborhood Outlet Medium-High Medium Medium-Low 19

20 DIVERSIFICATION PARQUE ARAUCO OPERATES IN THREE ATTRACTIVE ECONOMIES GDP GROWTH POPULATION (MILLIONS) 3.4% 4.0% 2.5% 3.7% 2.7% % 1.5% 1.9% 1.8% f f f f f f Chile Peru Colombia Chile Peru Colombia RETAIL SALES GROWTH GDP PER CAPITA, PPP 4.6% 4.7% 3.5% 3.9% 3.4% 22,337 22,409 22, % 2.3% 11,974 12,160 12,483 13,099 13,174 13, % 0.7% f f f f f f Chile Peru Colombia Chile Peru Colombia Source: GDP Growth, Population and GDP Per Capita: International Monetary Fund, April Retail Sales: Euromonitor, December

21 DIVERSIFICATION DIVERSIFICATION VIA MIXED-USE PROPERTIES Generate synergy between formats RATIONALE Densify strategic locations in urban areas Respond to each area s different client needs Follow new trends toward creating spaces that allow people to connect PARQUE ARAUCO KENNEDY EXPANSION PHASE 1 DETAILS 2017 Construction start 3,000 m 2 PHASE II DETAILS Convention Center Construction Rooms start Tower 15,000 m 2 UF 5,355,000 Investment Opening date 2021 New flagship Falabella 25,000 m 2 UF 2,200,000 Investment Opening date Star Hotel Hilton by Hilton 11,000 m 2 Additional GLA 10,000 m 2 Additional GLA 21

22 GROWTH PARQUE ARAUCO HAS 1 MILLION M 2 AND A 2% MARKET PARTICIPATION IN LATIN AMERICAN AND A 9% MARKET PARTICIPATION IN THE ANDEAN REGION MÉXICO GLA: 18.4 Million m 2 39% of total ANDEAN REGION GLA: 11.1 Million m 2 24% of total LATIN AMERICA GLA: 47.4 million m 2 Indicator Chile Peru Colombia Total GLA (th) 3,500 2,700 5,300 GLA Parque Arauco (th) Market Share 13% 15% 3% Rank #3 #3 #4 BRASIL GLA: 15.4 Million m 2 32% of total ARGENTINA GLA: 2.1 Million m 2 5% of total Source: Prepared using information published by the International Council of Shopping Centers (ICSC) (Mexico, Argentina, and Chile), Brazilian Shopping Center Council (ABRASCE), Peruvian Shopping Center Council (ACCEP), Colombian Shopping Center Association (ACE) and Parque Arauco analysis. 22

23 GROWTH PARQUE ARAUCO S GROWTH HAS COME FROM GREENFIELD PROJECTS, M&A AND MINORITY INTEREST PURCHASES TOTAL INVESTMENT (US$ MM) ,443 5% Landbank % M&A 12% Minority Interest % Greenfields and expansions TOTAL 1. Using the following exchange rates: US$1= CLP M&A considers cash flows used for acquiring subsidiares or other businesses. Minority interests considers cash flows used for acquiring non-controlling interests and other payments to acquire joint ventures. Greenfields and landbank includes purchase of other long-term assets. This does not include other investments, including interests recieved, purchases of property, plant and equpment, purchases of intangible assets, dividends recieved, and other inputs (outputs) of cash. 23

24 GROWTH OUR VALUE CREATION SPREAD IS APPROXIMATELY 3% 3% 8% 5% 24 WACC Spread Over WACC Cap Rate 24

25 GROWTH TOTAL RETURN Parque Arauco s value creation is proven by the fact that it has had one of the highest Total Return of the real estate sector in the last years. TOTAL RETURN 1, LAST 5 YEARS ANNUALIZED, LOCAL CURRENCY TOTAL RETURN 1, LAST 10 YEARS ANNUALIZED, LOCAL CURRENCY 15% 13% Iguatemi Parque Arauco 23% 21% 10% Multiplan 21% Simon 17% 8% 7% 7% 4% 3% 3% 0% BR Malls 17% Macerich 15% S&P % Falabella 13% -1% -2% -4%-6% -7% -12% Taubman 11% Iguatemi Parque Arauco Multiplan S&P 500 Simon IPSA BR Malls Falabella Aliansce Klepierre Macerich Taubman Hammerson Cencosud Fibra Uno Intu Klepierre 10% IPSA 8% Cencosud 5% Hammerson 3% Intu -6% Source: Bloomberg 1. Total return includes dividends as of December 31,

26 GROWTH PARQUE ARAUCO IS SUPPORTING THE GLOBALIZATION OF SEVERAL BRANDS ENTERING THE ANDEAN REGION FIRST OPENINGS IN CHILE RETAIL PRESENCE BY COUNTRY (% OF GLOBAL BRANDS IN COUNTRY) United States United Kingdom México Colombia Brazil Chile Argentina Perú Venezuela FIRST OPENINGS IN PERU There is still potential for new international brands to enter the Chilean, Peruvian and Colombian markets. FIRST OPENINGS IN COLOMBIA 1) Source: CBRE: How Global is the business of retail? (2017) 26

27 GROWTH INNOVATING IN A NEW BUSINESS ENVIRONMENT ECOMMERCE SALES OVER TOTAL RETAIL SALES % 10.3% 9.3% 8.5% 13.3% PARQUE ARAUCO IS INVESTING IN TECHNOLOGY 3.2% 2.4% 1.9% 1.6% 1.3% USA Chile, Perú, Colombia Digital Directories New webpages New Wifi E-COMMERCE SALES GROWTH % 23.3% 23.5% 26.8% 32.7% 15.0% 11.6% 14.1% 13.4% 13.1% Smart parking Customer journey redesign App development INTERNET USE FOR ONLINE SHOPPING AND BILL PAYING (%) United States % BRICK AND MORTAR SALES GROWTH 1 3.7% 1.2% 2.5% 3.0% 1.2% 1.2% 1.5% USA Chile, Perú, Colombia China Chile Colombia Perú 12% 7% 30% 49% 0.4% 0.9% -1.6% ) Source: Eurmonitor, December ) Source: Global Findex 2017 (WorldBank) 27

28 GROWTH PARQUE ARAUCO PARTICIPATES IN COUNTRIES WITH GROWING RETAIL MARKETS ROOM FOR GROWTH IN EMERGING ECONOMIES 1 RETAIL MARKETS IN CAPITAL CITIES 1 CLOSING GLA per 1,000 inhabitants GDP / GLA GLA per 1,000 inhabitants GDP / GLA GLA per 1000 inhabitants GDP / GLA GLA per 1000 inhabitants GDP / GLA 1. Source: International Council of Shopping Centers, World Bank, The Brooking Institution, CoStar, Alphawise, CASC, CapitalLand Mall Trust, Japan Council of Shopping Centers, Mexico (CBRE), Brazil (ABRASCE), Peru (ACCEP), Morgan Stanley Research 28

29 SUSTAINABILITY & CORPORATE GOVERNANCE PARQUE ARAUCO HAS RECEIVED IMPORTANT RECOGNITIONS FROM LOCAL AND INTERNATIONAL ORGANIZATIONS WORKPLACE RECOGNITION MANAGEMENT RECOGNITION Parque Arauco was recognized by Great Place to Work in Chile in st place ranking in 2017 Transparency in Reporting on Anti-Corruption. INVESTOR RELATIONS RECOGNITION SUSTAINABILITY RECOGNITION 2 nd best Investor Relations program in 2017 Latin American Real Estate sell-side ranking by Institutional Investor. For the third year running, in 2018 Parque Arauco is part of the Dow Jones Emerging Market Sustainability Index. We are the first Latin American real estate company to be part of this prestigious index. 29

30 SUSTAINABILITY & CORPORATE GOVERNANCE IN THE LAST YEARS WE HAVE CONTINUED ADVANCING OUR SUSTAINABILITY STRATEGY SUSTAINABILITY AGENDA GENERATING SOCIAL VALUE Develop programs and initiatives that support local and emerging entrepreneurship in Chile, Peru and Colombia. Conduct activities that promote a culture of inclusion and accessibility at our shopping centers in Chile, Peru and Colombia. Develop and implement a corporate strategy on engagement with surrounding communities. RESPONSIBLY OPERATING OUR SHOPPING CENTERS Provide training on and launch a tool for assessing our strategic suppliers sustainability practices in Chile, Peru and Colombia. Implement sustainable construction standards for future Parque Arauco projects. Measure environmental performance of operational shopping centers and efficiently manage natural resources. COMMITMENT AND LEADERSHIP IN DECISION MAKING Continue progress on assessment and implementation of labor practices in order to be recognized as a company that attracts the best talent. Implement a risk management model Strengthen ethics and good corporate governance practices. OTHER HIGHLIGHTS We adhere to the United Nations Global Compact. We continued to be the only Latin American Real Estate Company in the Dow Jones Sustainability Emerging Markets Index. We published our first integrated annual report based on our 2017 results. Social integration of our shopping center Strengthening ties with Neighboring communities Support for local and emerging Enterpreneurship Ethics and good corporate governance Generating Social Value SUSTAINABILITY Responsability Operating Our Shopping Center Commitment and Leadership in Decision Making Managing and monitoring Managing Working conditions with our value chains Atracting and retaining talent Magaging the enviromental impact of shopping center construction Magaging the enviromental impact of shopping center operations 30

31 FINANCIAL STRENGTH PARQUE ARAUCO S POLICY IS TO FINANCE PROJECTS WITH 50% DEBT AND 50% EQUITY, AND IS COMFORTABLY WITHIN ALL ITS COVENANTS LIABILITIES / EQUITY NET FINANCIAL DEBT / EQUITY 1.15x 1.18x 1.21x 1.21x _ < 1.40x _ < 1.50x 0.78x 0.89x 0.81x 0.43x 0.59x 0.47x 0.76x 0.72x 0.77x 0.66x EBITDA/FINANCIAL EXPENSES NET FINANCIAL DEBT/EBITDA 3.42x 3.89x 3.31x 3.33x 3.04x 3.42x 3.76x _ > 2.50x 3.85x 5.00x 4.25x 5.87x 5.88x 5.54x 5.19x

32 FINANCIAL STRENGTH CONSERVATIVE DEBT STRUCTURE LIABILITY AMORTIZACION PROFILE AND DURATION (MM USD) DEBT DURATION 6.3 years RENTAL CONTRACT LENGTH 5.7 years SUMMARY OF DEBT BY CURRENCY SUMMARY OF LIABILITY STRUCTURE SUMMARY OF DEBT RATES CLP 5% LOCAL RATING Fitch: AA- Feller: AA- ICR: AA- Variable 10% PEN 12% Loans 30% UF 74% DEC 2018 COP 9% Bonds 66% DEC 2018 Leasing 4% DEC 2018 Fixed 90% 32 Source: Parque Arauco (1) Does not include accrued interests and the exchange rate is at the close of December 31, 2018.

33 FINANCIAL STRENGTH THE COST OF DEBT HAS DECREASED IMPORTANTLY IN THE PAST 5 YEARS DATE: 12 / 12 / 2014 BASE: 1.66 % SPREAD: 1.74 % RATE: 3.40 % DURATION: 14.3 DATE: 04 / 17 / 2015 BASE: 1.62 % SPREAD: 1.68 % RATE: 3.30 % DURATION: DATE: 10 / 12 / 2016 BASE: 1.46 % SPREAD: 1.02% RATE: 2.48% DURATION: DATE: 08 / 30 / 2018 BASE: 1.59 % SPREAD: 0.75% RATE 2.34% DURATION: 8.9 GENERIC LONG-TERM BOND ISSUED BY PARQUE ARAUCO IN CHILE The cost of debt of Parque Arauco has decreased 180 POINTS from 4.1% to 2.3% the spread five years ago had collateral agreements, while the current spread is unsecured with no collateral. 33 Generic AA Chilean Bond (Duration 15 years) Central Bank of Chile Interest Rate Source: Risk America 33

34 4. FUTURE DEVELOPMENTS 34

35 FUTURE DEVELOPMENTS NEW PROJECTS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD 2 La Molina Development Perú Neighborhood TBD 19, % 19, , Subtotal 19,500 19, EXPANSIONS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD 2 Parque Arauco Kennedy - Phase 1³ Expansion Chile Regional / Hotel 2H21 11, % 11,000 5,355, Parque Arauco Kennedy - Phase 2 4 Expansion Chile Regional/Tower 2H24 10, % 10,000 2,200, Arauco Premium Outlet Buenaventura Espansión Chile Outlet 2H19 3, % 3, ,000 6 Subtotal 24,500 24, OTHER PROJECTS TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD 2 MegaPlaza 5 Minority Interest Perú Various 2H19 N/A 50% Subtotal PROJECTS INCORPORATED IN 2018 TYPE COUNTRY FORMAT ESTIMATED DATE TOTAL GLA M² % OWNERSHIP TOTAL OWNED GLA M² TOTAL INVESTMENT LOCAL CURRENCY¹ TOTAL INVESTMENT MUSD 2 Viamix Colonial Development Perú Neighborhood 1Q18 3, % 3,000 25,000 6 El Quinde Cajamarca Expansion Perú Regional 2Q18 2, % 2,500 40, Parque Angamos Development Chile Neighborhood 3Q18 10,500 55% 5, , Arauco Express Coquimbo Development Chile Strip Center 4Q18 3,000 53% 1, ,000 6 Arauco Express Ossandón Expansion Chile Strip Center 4Q18 1,000 53% ,500 3 Bazar Gourmet- Parque Arauco Kennedy Expansion Chile Regional 4Q18 1, % 1, ,000 5 Arauco El Bosque Acquisition Chile Regional 4Q18 30, % 30,000 1,750, Subtotal 51,000 44, Total 95, , Remaining to Invest 450 1) Projects in Chile in UF, in Peru in ThPEN, in Colombia in MCOP 2) Considering the exchange rate as of December 31, 2018: CLP/UF, CLP/USD, 3, COP/USD, 3.37 PEN/USD. 3) In addition to the 11,000 m 2, this expansion includes a 401 room Hilton by Hilton Hotel and the largest hotel convention center in Santiago. 4) This project also includes a 15,000 m 2 tower. 5)In accordance with the relevant event reported on June 1, 2018, this is related to a binding agreement with the Wiese Group for a business combination. The execution of this agreement requires various restructurings and legal matters, considering that additionally there is a call and put option for Parque Arauco and the Wiese Group, respectively. 35

36 LANDBANK NAME M 2 % OWNERSHIP TOTAL COST (LOCAL CURRENCY) 1 TOTAL COST (MUSD) 2 Quilicura 25, % 78,000 3 Buenaventura 115, % 455, Chicureo 47, % 206,000 8 Los Andes 39, % 117,000 5 San Pedro de la Paz 17, % 51,000 2 Total Chile 245, % 907, Chimbote 42, % 18,000 5 Talara 30, % 9,400 3 Ica 12, % 13,500 4 Chiclayo 6, % 6,300 2 Pomalca Chiclayo 45, % 6,565 2 Lambayeque- MegaPlaza 25,260 50% 18,900 6 San Juan de Lurigancho- MegaPlaza 80,000 50% 10,415 3 Otros MegaPlaza 106,157 50% 85, Total Peru 349,043 70% 168, Neiva 49, % 18,000 6 Valledupar 46, % 30,000 9 Barranquilla 56, % 76, Total Colombia 151, % 124, Total 745,966 86% 123 LANDBANK BY TOTAL COST (DECEMBER 2018) 29% TOTAL COST US$ 123 MILLION 31% 40% Chile Peru Colombia 1) Landbank in Chile in UF, in Peru in ThPEN, in Colombia in MCOP. 2) Considering the exchange rate as of December 31, 2018: CLP/UF, CLP/USD, 3, COP/USD, 3.37 PEN/USD. 36

37 MEGAPLAZA BUSINESS COMBINATION City Total GLA (m 2 ) Occupancy MegaPlaza Norte Lima ,2% MegaPlaza is a Peruvian shopping center company, which began its operation in 2002 with the opening of its first mall, MegaPlaza Norte in Lima. There are 11 MegaPlaza shopping centers throughout the country. MegaPlaza is a joint venture between Parque Arauco and the Wiese Group. In June 2018, Parque Arauco and the Wiese Group signed an agreement for a business combination resulting in the formation of a new entity, Newco I. This agreement includes a put and call option, in which Parque Arauco can buy and obtain 100% of the operation of MegaPlaza and the Wiese Group has the option to sell their participation. MegaPlaza Express Villa Chorrillos Lima ,1% MegaPlaza Chimbote Chimbote ,7% MegaPlaza Express Villa El Salvador Lima ,8% MegaPlaza Express Chincha Chincha ,1% MegaPlaza Cañete Cañete ,4% MegaPlaza Express Barranca Barranca ,9% MegaPlaza Pisco Pisco ,4% MegaPlaza Jaén Jaén ,5% MegaPlaza Huaral Huaral ,5% MegaPlaza Villa El Salvador II Lima ,3% Total Perú ,1% LOCATIONS Jaén TOTAL GLA (M 2 ) +2.3% REVENUE LTM (M PEN) +0.6% EBITDA LTM (M PEN) -2.1% MegaPlaza Norte MegaPlaza Villa Chorrillos MegaPlaza Villa El Savador MegaPlaza Villa El Savador II Chimbote Barranca Huaral Lima Cañete Chincha Pisco 240, , , , , ,

38 GLOSSARY ADJUSTED FFO MARGIN: AFFO / revenues AFFO: Adjusted Funds From Operations: Net Profit Depreciation & Amortization - Other Income/ expenses - Share of Profit (Loss) of Associates Accounted - Foreign Exchange Differences - Income (Loss) for indexed assets and liabilities - Gains (losses) from the difference between the previous book value and the fair value of financial assets - Deferred tax+ Associates accounted Adjusted FFO CONTROLLING ADJUSTED FFO: AFFO attributable to the shareholders of the company CONTROLLING FFO: FFO attributable to the shareholders of the company EBITDA : Earnings Before Income Tax Depreciation and Amortization: Revenues + Cost of Sales + Administration Expenses - Depreciation and Amortization EBITDA margin -EBITDA divided by revenues EPS: Earnings Per Share: Net income attributable to the equity holders of the company/weighted average number of shares outstanding FFO: Funds From Operations: Net Profit - Depreciation & Amortization - Share of Profit (Loss) of Associates Accounted + Associates Accounted FFO GLA: Gross Leasable Area. Equivalent to the sum of all the areas available for lease GREENFIELD PROJECTS: Organic development of new shopping centers LANDBANK: Land held by the company for future development LTM: Refers to information from the last twelve months MONTHLY REVENUES/M 2 : Monthly revenues divided by the occupied GLA for the period MONTHLY SALES/M 2 : Monthly tenant sales divided by the occupied GLA for the period NEIGHBORHOOD MALL: A shopping mall with a GLA between 6,000 and 20,000 m 2 NET INCOME MARGIN: Net profit / revenues NOI: Net Operating Income: Revenues + Cost of Sales + Administration Expenses - Depreciation & Amortization + Associates accounted NOI OCCUPANCY: GLA paying rent divided by total GLA OCCUPANCY COST: Minimum rent, plus variable rent, plus common expenses, plus a promotion fund that the tenants pay Parque Arauco divided by the sales of the tenant. OWNED GLA: Total GLA weighted by Parque Arauco s interest in the mall PIPELINE: Greenfield and expansion projects under development PREMIUM OUTLET: Shopping center located outside of the city offering name brand clothing and goods for a reduced price REGIONAL MALL: A shopping mall with a GLA over 20,000 m 2. SSR: Same Store Rent: Percentage change in rent collected from tenants that paid rent in both of the periods compared SSS: Same Store Sales: Percentage change in sales from tenants that reported sales in both of the periods compared STRIP CENTER: A shopping center with a GLA less than 6,000 m 2 Tenant Sales Tenant sales of the consolidated assets UF:Unidad de Fomento: A chilean currency unit indexed according to inflation on a daily basis. 38

39